Roblox (NYSE:RBLX) Upgraded to "Hold" at TD Cowen

Key Points

• TD Cowen upgraded Roblox to "Hold", joining a mix of recent analyst moves (several firms cut price targets) while the consensus rating remains a "Moderate Buy" with a $108.24 average price target.
• Q1 results were mixed: EPS of ($0.35) topped estimates but revenue of $1.44B missed expectations, and management sharply cut annual bookings/revenue guidance citing safety features and age‑verification that have slowed user growth, prompting a market selloff.
• Insiders have been net sellers: Company insiders sold 551,996 shares (~$38.4M) over the last three months; insiders still own 12.92% of shares while institutional investors hold about 94.46%.

Roblox (NYSE:RBLX - Get Free Report) was upgraded by investment analysts at TD Cowen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Friday, MarketBeat.com reports.

RBLX has been the topic of a number of other reports. Wall Street Zen upgraded Roblox from a "sell" rating to a "hold" rating in a research report on Saturday, March 28th. Barclays reduced their target price on shares of Roblox from $130.00 to $115.00 and set an "equal weight" rating on the stock in a research note on Friday, February 6th. Morgan Stanley lowered their target price on shares of Roblox from $155.00 to $140.00 and set an "overweight" rating on the stock in a report on Friday, February 6th. Needham & Company LLC dropped their target price on shares of Roblox from $159.00 to $105.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Finally, The Goldman Sachs Group cut their price target on shares of Roblox from $140.00 to $125.00 and set a "buy" rating for the company in a report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $108.24.

Roblox Stock Down 1.5%

NYSE RBLX opened at $55.43 on Friday. Roblox has a 1-year low of $51.23 and a 1-year high of $150.59. The company has a market capitalization of $37.07 billion, a price-to-earnings ratio of -35.76 and a beta of 1.67. The stock's 50 day moving average is $59.46 and its two-hundred day moving average is $80.23. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.65.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.41) by $0.06. The business had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.74 billion. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.Roblox's quarterly revenue was up 43.4% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.32) EPS. Equities analysts forecast that Roblox will post -1.6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Arvind Chakravarthy sold 40,646 shares of the stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total transaction of $2,732,630.58. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Gregory Baszucki sold 16,666 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total transaction of $965,794.70. Following the completion of the sale, the director directly owned 1,302,834 shares of the company's stock, valued at approximately $75,499,230.30. This represents a 1.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 551,996 shares of company stock valued at $38,421,146 over the last three months. Company insiders own 12.92% of the company's stock.

Institutional Investors Weigh In On Roblox

Hedge funds and other institutional investors have recently made changes to their positions in the company. Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Roblox during the third quarter worth $26,000. Whittier Trust Co. of Nevada Inc. bought a new position in Roblox in the third quarter valued at about $37,000. Root Financial Partners LLC acquired a new stake in Roblox in the third quarter worth about $38,000. Sunbelt Securities Inc. raised its holdings in Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after purchasing an additional 105 shares during the last quarter. Finally, Salomon & Ludwin LLC bought a new stake in Roblox during the 3rd quarter worth about $41,000. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Q1 results showed improvement vs. last year: Roblox posted a smaller-than-expected loss and revenue was up substantially year-over-year, underscoring continued platform scale. Roblox (RBLX) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Regulatory/compliance activity: Roblox said it is implementing control measures to comply with Indonesia’s social media rules for users under 16 — this is operationally relevant but not an immediate earnings surprise. Roblox announces control measures to comply with Indonesia's social media curb
• Neutral Sentiment: Full earnings call transcript and slides are available for deeper read-through of management’s explanation of user trends, safety investments and margin outlook. Review the call for color on timing of user‑recovery assumptions. Roblox Corporation (RBLX) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Guidance cut: management sharply trimmed annual bookings/revenue expectations and lowered Q2 revenue guidance, citing the impact of new safety features and age verification that have reduced user communication and slowed new-user growth — the primary driver of the selloff. Roblox slashes annual bookings forecast as new safety features take their toll
• Negative Sentiment: Market reaction and analyst concerns: media and markets coverage notes the reduced outlook is below Street expectations and flagged slower user monetization, which prompted a sharp intraday/after‑hours decline in the stock. Roblox Cuts Outlook as Safety Efforts Weigh on First-Quarter Results
• Negative Sentiment: Reputational/legal risk: a media report about an alleged safety failure and a lawsuit was published, which could add regulatory, litigation or PR pressure for the company. Roblox allowed predator to pay Uber driver $1K to abduct teen girl who was sexually assaulted, locked in a room: lawsuit

Roblox Company Profile

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company's building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox's business model is built around its virtual economy and creator ecosystem.

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